Start small to make it Big!

Starting this blog, where I share 24 years of learnings from my various businesses, feels apt with the first mistake I made in my first ever business. The story begins 24 years ago, when I was in my twenties, fresh out of school, with an itch to start my own venture. I had no intention of working for someone else; I wanted to be my own boss. I dreamed of enjoying my work, free from the instructions and criticisms of others. My ambitions were grand, and I believed starting a business would be my ticket to success.

Even back then, I had shown a knack for sales, often selling odd items to friends and acquaintances. I was always more interested in practical knowledge than traditional education, preferring to learn about physics, electronics, and coding over memorizing history lessons.

Recognizing my disinterest in further studies, my parents eventually agreed to help me start a business, sowing the seeds of what would become my greatest lesson in entrepreneurship.

I wanted a grand business, not a small one. I envisioned a thriving enterprise and believed a computer store was the perfect venture. To make it grand, I needed a showroom—one of the best in the city. With my parents' support, I opened a shiny new computer store in the heart of the city in the year 2000. The store was a dream come true, with glass facades, a stylish interior, and a dedicated cabin for me to meet clients. The display area showcased the best computers and audio systems with Dolby sound. I had invested all my capital into the store, confident I would quickly earn it back.

The first three and a half years were decent. While I didn't achieve my dream of printing money, customers came in, and I made a respectable profit on each sale. However, I couldn't build back my capital. My margins were decent but limited because I could only afford to buy one or two computers at a time. Bulk purchases would have given me better margins, enabling me to save and reinvest in the business.

By mid-2004, computers had become a commodity in India. Customers no longer needed solutions; they came with specific requirements, comparing prices across multiple stores. Price became the only deciding factor. My initial investment in the store left me with no capital for bulk inventory purchases, forcing me to operate on razor-thin margins. As competitors offered lower prices, my margins dwindled, and the cost of running the store increased. I eventually shut down the store in early 2006.

In contrast, another entrepreneur who started in 2003 took a different approach. Initially, he played the middleman, supplying computer parts to store owners like me with minimal margins. He operated from home, taking orders with a notepad and fulfilling them within hours. With no overhead costs, he reinvested every penny. After a year, he rented a small, modest store in the same complex as mine. Despite its simplicity, his inventory was more extensive than mine.

As my business declined, his flourished. The key difference was that he started small and grew steadily, while I began with a grand vision that overextended my resources. By the time I closed my business, his had grown tenfold. Even as he expanded, he maintained his modest approach.

Reflecting on my past mistakes, this one stands out the most. Over the years, I've seen many business owners make the same mistake: starting big instead of small. Remember, the most prolific businesses today—like Apple and Amazon—started small.

Start small to make it Big!